Proton recovery should be on track with RM1.5b loan

Proton is expected to have reduced its debts and started its recovery efforts with the RM1.5 billion soft loan approved by the government last month, The Sun reports.

International Trade and Industry Minister Datuk Mustapa Mohamed said the soft loan was approved to further strengthen Proton’s position in the automotive industry, both in the country and internationally.

“The main objective of the RM1.5 billion soft loan was to enable Proton to make payments to all its vendors, which supply component parts. This will give Proton the opportunity to reduce its debts level and focus on efforts of company recovery and development,” he said in a parliamentary written reply to Dungun MP Wan Hassan Mohd Ramli, adding that the government took into consideration important aspects like employment, business ecosystem as well as research and development.

“We are also taking into consideration the interest of its some 60,000 workers and vendors. This is why we’ve decided to grant them the soft loan. We hope Proton will do better as it is important for 60,000 people working under the company,” the MITI minister said in April.

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When the loan was approved on April 8, Mustapa said that the government has set several conditions for Proton to meet, including the company having to “convince the government” of its new business model. Proton will also have to provide a strategic plan to expand its domestic and international markets, and a special task force led by Pemandu CEO Datuk Seri Idris Jala will overlook Proton’s transformation plan.

Proton is confident that its fortunes can be reversed. “The announcement by the government will catalyse Proton’s turnaround plan, which includes the rolling out of three new models this year starting with the Perdana. With the infusion of new members of management, the company is confident to turn around,” new Proton CEO Datuk Ahmad Fuaad Kenali said after the loan announcement.

“Proton is also constantly engaging its strategic partners to explore collaborative opportunities to improve its products offerings and time to market. I believe the assistance by the government will reinforce the confidence of our partners in Proton,” Fuaad said. “We welcome the setting up of the task force and look forward to working closely with them to chart sustainable growth for Proton,” he added.

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

Sudah dapat tongkat now wanna berlagak pulak.!!
Why the change of heart ?
Before this begging , tell sob story and agree to all the conditions set out .
If this is the way P1 is heading then this 1.5 b can be considered as debt unrecoverable.
Bercukurlah Proton !!!

Why waste the money to save?Should throw them to Bankrupcy and save multi Billion each year. We dun need proton anymore? Our nation has pile up million of used car can be resell and reuse, why need save Proton to produce junk product next? Yes, Proton can create job here, but it also burden our country, why let cost burden company slow down our growth? Think about it.

Tak Happy, u r very right.
How can u bailout a private auto company using public funds?
Tan Chong made losses last year,I think they deserve some ” grants” too.
In the end,Naza,having retrenched 300 staff should also qualify for assistance.They also got suppliers banging on their tables.
This year,Proton’s aales will only hit 75,000 units.It will be another year of losses.Next year how? Ask for another 1.5 B?
There will be no end to this BAILOUT MENTALITY.
DRB is making record profits from the Honda sales.
They cant collapse,and should not ask for a sen!
Tomorrow,the twice bailout bank collapse,and r u going to do a bailout again?

Government should publish these “convince the government new business model” to the public because the RM1.5B is the people’s money. Who can forget what happened with Perwaja Steel. History is repeating itself…

Launch a new model suck in 1.5B in 2016. Launch another new models in 2018 suck in another 1.5B…no no no, it will be 6 Billion Ringgit. LOL. Why don’t we use that money to upgrade our gov hospitals, schools, University, hire more oversea lectures to teach our students on how to be competitive and contribute to our county…don’t that sound even better.

Seriously…..repeating the same actions again and again, expecting different results….? I guess the ‘People in Power’ can go on convincing themselves of their hubris, but for the rest of us Taxpayers footing the bill, as well as the numerous historical bills, thanks to Proton’s repeated follies, it is foregone conclusion that it is another case of ‘Bad-Debt’ write-off. Bottom line, they should just do away with the Charades and ‘half-baked business plans’; and stick to addressing the bread and butter issues, ‘Cut the Fat’ from the Organisation, Stem the bleeding by disposing frivolous, non-viable business entities, ‘Sweat their existing assets’ and get professionals to run the business, not hand-picked ‘apple polishers’ who know next to nothing about running a successful manufacturing concern. In short , ‘People in Power’ do know the real answers to Proton’s problems, But do they have the Fortitude to see it through? Only Time will Tell…..

brader, time already told. 30 years of result till today that majority rakyat have rejected/complained thier bad product.
All new tease/dream of TGDi still a myth. While their “shoe polisher” fans=john/donkey/kancil hybrid boasting hi-HP engine even though nowhere to be seen on sale at any market… hopeless

It might help u repay vendors, and u say ‘we are back on track’.. Forgetting u actually have to repay that 1.5 billion plus god know howmuch the interest on that.. Flawed business model, incompetent people all around, and management level u see no one with any auto experience on their side… Sad part is we know the brand have potential, bt its pointless wen society’s dumbest are sitting on top…

Ok in order to proof to rakyat show us the results then only v believe.if not anything in air sory gone r the days when rakyat just believe on statements like that.bez already made many many statements like this in past but still taking our tax payers money as loan.

Proton was a mistake from day one.. Look at the drain of investment to Thailand.. Also it was run under the wrong policy of ‘PROTECTIONISM,”..as also applied to many policies in this country.. Competitiveness erodes with Protectionism practices

We hear the same repeating statement every 3 to 5 years.
“Proton recovery should be on track”
Every time Proton need tongkat, the same statement will be recycled. We always read “Should Be” and that also mean, by right it should, but always by left.. it failed!

On track to pay back the 1.5 b loan ?
No news on restructuring progress , no news of foreign partner , no news of major shake up and they have the cheek to say that “semua ok ?”
The chopper has also been very quiet probably unable to do much cos govt directive insisting on retaining the 60k overpaid & overbloated work force.
Look at today’s DRB Hicom share price – 90 sen.
Its a penny stock eventhough NTA is 3.80
Operating on borrowed money and over leveraged.. . Bercukurlah!! Sigh !!

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